Leaving a lot of space for speculation, the aspect of legislation surrounding cryptocurrency gambling is yet to mature. Confused by ambiguous decisions and controversial facts of authorities in regards to blockchain, online casinos suggest the use of cryptocurrencies when gambling online. With a desire to operate legally, they strive to find out if it’s legal to offer Bitcoin gambling services, if Bitcoin casinos should be licensed, and which players from what countries are accepted.
Should a Bitcoin casino have a gambling license?
A gambling license is necessary for an online casino to get a merchant bank account and officially work with online payment systems. When a casino site works with cryptocurrency, processing of all payments can be performed internally without involving third party services. There’s a direct movement of Bitcoins between the Bitcoin wallets of players and the casinos with instant transactions. As such, a gambling license for Bitcoin casinos is considered optional and not a prerequisite.
On the other hand, most players perceive Bitcoin casinos as traditional online casinos. They ensure that they’re playing in a secure and reputable online environment. As such, a valid iGaming license becomes essential. Within the next several years, legislation around cryptocurrencies is bound to evolve at a fast pace across the world. To be on the safe side away from any potential risks, it is advisable for iGaming operators to follow gambling laws in their targeted jurisdictions.
Key facts on cryptocurrency gambling legality
In general, there exist no specific laws that regulate any Bitcoin casino and it’s officially not prohibited nor allowed. However, with more countries viewing cryptocurrency positively, the attitude toward Bitcoin by different authorities is changing rapidly. If a government can refer to Bitcoin as ‘not a real currency’, then no regulation should be applied to a Bitcoin online casino. Nevertheless, in countries where online gambling is prohibited, authorities may still apply measures against individuals gambling with cryptocurrencies.
That said, cryptocurrency gaming sites offer an advantage of increased anonymity to gamblers. Cryptocurrency payments combined with anonymity techniques like Tor makes it very hard for the authorities to detect gambling activities. The good news is that there are a few reputable gambling jurisdictions that issue licenses to cryptocurrency gaming sites (notably, the United Kingdom and Curacao). As long as online casinos follow the rules and regulations of their jurisdiction, they’re considered to be in legal operation.